Crude oil futures in the international market rose marginally in recent trade because traders expected the US economy to avert recession after the US government arrived at a deal on fiscal cliff.
Recently, the Senate and the House of Representatives approved a deal preventing a raft of austerity measures from coming into effect in 2013, which could have pushed the US economy into recession.
Traders were keenly watching the development on fiscal cliff in December and the market witnessed a relief rally as soon as a deal was reached in the beginning of the New Year.
Among its other features, the deal raises tax rates on individualsÂ’ incomes of more than $400,000 and on couplesÂ’ incomes over $450,000, extends unemployment benefits, and delays across-the-board spending cuts for two months.
Crude oil contract at the Multi Commodity Exchange in India also witnessed some gains in line with the price movement in the international market. The firming trend in Asia after US politicians signalled a last-minute deal to avoid the economy-crunching fiscal cliff led to the uptrend in the crude futures, reports suggest.
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